RNS Number : 9994F
International Workplace Group PLC
04 November 2025
4 November 2025
THIRD QUARTER TRADING STATEMENT
International Workplace Group plc, the world's largest hybrid workspace platform with a network in over 120 countries through flexible workspace brands such as Regus, Spaces, HQ, Signature, issues its third quarter trading statement for the three months ended 30 September 2025.
UNPRECEDENTED NETWORK GROWTH AND HIGHER OCCUPANCY
· Quarterly system-wide revenue of $1.1bn, growth of 4% year-over-year
o Managed & Franchised: system-wide revenue growth of 36%. +83% in recurring management fees year-over-year
o Company-owned: occupancy continues to climb whilst maintaining RevPAR
· Incremental investment outlined during H1 2025 has resulted in further capital-light expansion in network and coverage, with c.40%+ increase in both signings and openings year-over-year
o Total Q3 2025 signings 335 (2024: 234)
o Total Q3 2025 openings 215 (2024: 152)
· Continued capital returns to shareholders; over $100m of capital returns to shareholders during 2025 so far
Mark Dixon, Chief Executive of International Workplace Group plc, said:
"I am pleased with the financial results in the third quarter of 2025. The incremental investment we have made in our Managed & Franchised segment has already led to an acceleration in the number of locations we have opened and added to the pipeline as we continue to expand our network and coverage. The evolution of occupancy and pricing sets us up well for further growth in the remainder of the year and into 2026. Operational cash generation is enabling the ongoing share buyback."
SUMMARY FINANCIALS
($m)
Q3 2025
Q3 2024
Change
9m 2025
9m 2024
Change
System-wide revenue
1,125
1,081
4%
3,286
3,204
3%
Managed & Franchised
2131
157
36%
5741
444
29%
Company-owned
806
809
0%
2,399
2,422
(1)%
Company-owned (Open Centres)
797
791
1%
2,368
2,347
1%
Digital & Professional Services
106
115
(8)%
313
338
(7)%
D&PS underlying revenue2
106
107
0%
313
304
3%
Group revenue
947
947
0%
2,797
2,818
(1)%
Net financial (debt)
813
7543
1. Includes the Gross revenue of starter kits, previously disclosed as net. Impact of $9m
2. Excluding the impact of an exited contract
3. Net financial debt as of 30 June 2025
Managed & Franchised: Continues to deliver excellent results
Incremental discretionary investment into the segment has accelerated signings and openings when compared to 2024. System-wide revenue for the quarter has grown 36% year-over-year. Recurring management fees delivered growth of 83% year-over-year for the quarter.
At the end of Q3 2025, we had 245,000 rooms open, with a further 190,000 rooms in the pipeline (signed, not yet opened). Once these rooms are all open and mature, they are expected to produce system-wide revenues of more than $1.6bn per year.
Q3 2025
Q3 2024
Change (%)
9m 2025
9m 2024
Change (%)
System-wide revenue ($m)
2131
157
36%
5741
444
29%
RevPAR ($)
344
431
(20)%
328
401
(18)%
Managed
216
279
(23)%
192
238
(20)%
Franchised & JV
513
516
(1)%
507
496
2%
Fee revenue ($m)
351
23
50%
851
58
46%
Recurring management fees
11
6
83%
30
13
131%
Rooms open
245,000
169,000
45%
245,000
169,000
45%
Managed
161,000
87,000
85%
161,000
87,000
85%
Franchised & JV
84,000
82,000
2%
84,000
82,000
2%
Centres open
1,519
1,001
52%
1,519
1,001
52%
Managed
1,034
543
90%
1,034
543
90%
Franchised & JV
485
458
6%
485
458
6%
Rooms opened in the period (net)
25,000
15,000
66%
60,000
46,000
30%
Managed
24,000
13,000
88%
57,000
42,000
35%
Franchised & JV
1,000
2,000
(57)%
3,000
4,000
(25)%
Centres opened in the period (net)
154
100
54%
403
319
26%
Managed
147
91
62%
379
295
28%
Franchised & JV
7
9
(22)%
24
24
0%
Rooms in pipeline
190,000
173,000
10%
190,000
173,000
10%
New centre deals signed
261
181
44%
674
568
19%
1. Includes the Gross revenue of starter kits, previously disclosed as net. Impact of $9m in Q3 2025.
Company-owned: Good revenue visibility as increased occupancy built in H1 2025 continues through Q3 and is expected to drive RevPAR in 2026
Strategy to grow occupancy as previously outlined is working and feeding through to revenues. These higher occupancy levels are expected to drive revenue throughout Q4 and into 2026. We continue to selectively add new locations aligned with our capital-light strategy.
.
Q3 2025
Q3 2024
Growth
9m 2025
9m 2024
Growth
Revenue ($m)
806
809
0 %
2,399
2,422
(1) %
Revenue (Open Centres)
797
791
1%
2,368
2,347
1%
RevPAR ($)
354
363
(3)%
349
363
(4)%
Rooms open
780,000
772,000
1 %
780,000
772,000
1 %
Centres open
2,915
2,860
2%
2,915
2,860
2%
Rooms opened in the period (net)
3,000
1,000
190%
4,000
0
n.m
Centres opened in the period (net)
20
10
100%
42
28
50%
RevPAR - evolving as expected
Whilst we have previously stated we target $250 of RevPAR at maturity across our Managed Partnerships, it is important to note that RevPAR continues to rise beyond the 18-month stage putting upward pressure on system revenue for the segment. RevPAR continues to evolve as expected across the Group.
System RevPAR ($, monthly average)
Q3 2025
Q3 2025 ex 2024 Openings
Q3 2024
% change
Managed & Franchised
344
451
431
(20)%
Managed
216
309
279
(23)%
Franchised and JVs
513
527
516
(1)%
Company-Owned
354
364
363
(3)%
IWG Network
352
375
372
(6)%
Digital & Professional Services
Digital & Professional Services is focused on capturing the full value chain from the structural growth of hybrid working through continued investment in and development of the platform by adding new services and geographies to its operations.
($m)
Q3 2025
Q3 2024
Growth
9m 2025
9m 2024
Growth
Revenue
106
115
(8)%
313
338
(7)%
Underlying revenue2
106
107
0%
313
304
3%
2. Excluding the impact of an exited contract
Financing and Net Debt
($m)
30 September 2025
30 June 2025
Change
Cash & Cash equivalents
(381)
(446)
(65)
Drawn RCF
0
0
0
2027 0.5% Convertible Bond
178
178
0
2030 6.5% Corporate Bond
657
656
(1)
2032 5.125% Corporate Bond
333
333
0
Other
26
33
7
Net financial debt
813
754
(59)
Net financial debt increased over the quarter driven by:
· Acceleration of the share buyback program to take advantage of lower prices with repurchase of 16,748,305 shares for $47m as part of the Group's share buyback programme in Q3
· Customary working capital movements from supplier payments
Offset by:
· Cashflows from revenue growth, cost control and continued focus on the capital-light operating model
$173m of the 2027 0.5% Convertible Bond will be repaid using RCF liquidity on 9th December as expected. Following this, with the exception of $5m of the outstanding Convertible Bond, the company has no debt maturity until the RCF renewal in 2029. We expect net debt to reduce in Q4 2025, in-line with guidance.
Outlook and guidance
We confirm our guidance for the full 2025 financial year provided with the H1 2025 results as follows:
· Centre growth and signings to be higher than 2024
· No change to adjusted EBITDA and net debt guidance
· Reiterate commitment to maintaining a BBB credit rating
· Share buyback of at least $130m in 2025
· Cashflow to shareholders of at least $140m in 2025; and
· On track to deliver EBITDA of at least $1bn in the medium-term
The Company is hosting an Investor Day on 4 December 2025 in New York City, where we will outline our medium term-framework and update our capital allocation policy.
Financial calendar
4 December 2025 Investor Day in New York City
3 March 2026 2025 Full Year Results
5 May 2026 First Quarter 2026 Trading Update
11 August 2026 First Half 2026 Results
Details of results presentation
Mark Dixon, Chief Executive Officer, and Charlie Steel, Chief Financial Officer, will be hosting a conference call for analysts and investors at 9am UK time.
Please pre-register through PC, Mac, iOS or Android to attend the conference call using the link below: https://brunswickgroup.zoom.us/webinar/register/WN_ahvqfsjiS3uZ8hsVOJJB9w#/registration
Further information
International Workplace Group plc
Mark Dixon, Chief Executive Officer
Charlie Steel, Chief Financial Officer
Richard Manning, Head of Investor Relations
Brunswick Tel: +44 (0) 20 7404 5959
Nick Cosgrove
Peter Hesse
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